The US government (specifically the
Exchange Stabilization Fund (ESF)) is running a
Ponzi scheme, and Ponzi schemes require two levels of deceptions:
one aimed those who aren' t aware anything is wrong and one aimed those
who know there is fraud.

As expected, David G. Friehling, the former
accountant to Bernard Madoff pleaded guilty on November 3, 2009 to nine counts
of fraud and other charges in connection with his auditing work for
Madoff's firm. …

… However, he denied any knowledge of Mr. Madoff's Ponzi scheme and said HE
ENTRUSTED HIS OWN RETIREMENT AND HIS FAMILY'S INVESTMENTS TO MR. MADOFF in and in
what he said was "the biggest mistake of my life, I placed my trust in
Bernard Madoff," saying HE HAD ABOUT $500,000 WITH THE
MADOFF FIRM.

Mr. Friehling [<<< TRUE SUCKER] … faces a
statutory maximum of 114 years in prison on the charges,

If Bernie Madoff has lost $50bn (—‚¬35bn,
ÂŁ32bn) of other people' s money, as he is said to have admitted, why
did they trust him with it?

…
It is an old story: the allure of the Wall Street
insider. No one thought that Mr Madoff was
operating a Ponzi scheme but plenty of people thought he had an unfair
advantage. He was a former Nasdaq chairman
and one of Wall Street' s biggest marketmakers. Enough said.
…

… many Wall Street veterans thought Mr Madoff was up to something.
They did not think he was recycling client funds, according to Mr Blodget; they
suspected that he was using inside information from his big marketmaking
operation to “front-run” trades for his clients.That would have explained his oddly consistent high returns.
…

Mr Madoff made this point himself at a debate last year at the Philoctetes
Centre in New York. He first brazenly asserted that it
was “impossible for an [insider trading] violation to go undetected,
certainly not for a considerable period of time” because
of regulatory safeguards.
…

… HE HAD A NETWORK OF FINANCIAL ADVISERS,MANY
OF WHOM HAD INVESTED THEIR OWN CASH, WHO PORTRAYED INVESTING WITH MR MADOFF AS
A PRIVILEGE. It was a Main Street version of
the access that institutional investors and foundations had to private equity
and hedge funds.
…

Specifically, we're hearing that THE
SMART MONEY KNEW BERNIE HAD TO BE CHEATING, because the returns he was generating were impossibly
good. Many Wall Streeters
suspected the wrong rigged game,
though: THEY THOUGHT IT WAS INSIDER
TRADING, not a Ponzi scheme. And
here's the best part: That's why they invested with him.

For years and years I've heard people say that [Bernie's] investment
performance was too good to be true. The returns were too steady -- like GE
earnings under Welch -- and too high given the supposed strategy.
…
So why did these smart and skeptical investors keep investing? They, like many
Madoff investors, assumed Madoff was
somehow illegally trading on information from his market-making business for
their benefit. They didn't consider the
possibility that he was clean on that score but running a good old-fashioned
Ponzi scheme.
…

In the Ponzi scheme Madoff, there were a large number
of people who knew there was fraud. In fact, the participation of these
people (ie: Madoff's auditor) were essential
for the fraud to work. However, these people (ie: Madoff's auditor) would never have participate in the fraud
if they knew it was a ponzi scheme, doomed to collapse with devastating
consequences for all those involved. That is why Madoff lied to them
about the nature of the fraud, inventing a “fake” or “imaginary fraud” (“he was
using inside information to "front-run" trades”).

All ponzi schemes require such “imaginary frauds”to work. “Imaginary
frauds” (also
called "conspiracy theories") are easy to
detect because they have five defining characteristic:

1) "Imaginary frauds" are elitist. This is
so those “suckers” feel special or “privileged” for participating in the fraud
and don' t ask too many awkward questions.

2) "Imaginary frauds" are relatively benign (ie: insider trading is a victimless crime). This is
so those “suckers” which get involved in the ponzi scheme don' t understand the
risk they are taking. (If Madoff HAD been a case of insider trading, Mr.
Friehling would not be facing 114 years in prison)

3) "Imaginary frauds" are open ended
(there is no limit to how long they can go on). This is so those same
"suckers" don't understand the true likelihood of the fraud being
revealed to the world. Mr. Friehling (Madoff's auditor) thought that if
he correctly did his job of hiding the fraud (which he did) there was no risk
of discovery. He was wrong.

4) "Imaginary frauds" are
mastermind-type frauds. The
people running them are (ie: Madoff) are in complete control of the situation,
and their strange actionsare part of some (imaginary)
master plan. The complete opposite of the reality (it' s an out of control
Ponzi scheme doomed to collapse).

5) Since "imaginary frauds"
aren' t real, they are easily disproved.
“Imaginary Frauds” are 100% theorizing and 0% fact. This is also incredibly useful for discrediting those who correctly
warn about the Ponzi scheme itself.

Mr
Madoff … brazenly asserted that it was
“impossible for an [insider trading] violation to go undetected,
certainly not for a considerable period of time” because
of regulatory safeguards.

The ESF' s dollar Ponzi schemeThe US Ponzi scheme
(run by the
ESF) also requires the participation of a large
number of people. Again, these people would never have gotten involved if
they knew they were part of a doomed Ponzi scheme.
So there are a great many “Imaginary frauds”:

Hiding evidence of UFOs (victimless crime, no end date, not one shred of credible
evidence, definitely mastermind)The New World Order (noble crime, no end date, no evidence, also mastermind)The Illuminati (victimless crime, no end date, not one shred of credible
evidence, also mastermind)HAARP weapon system (noble crime, no end date, defies the laws of physics,
being done by people who can defy the laws of physics)Abiotic Oil (noble crime, no peak oil, based retarded idea that
earth' s crust magically produces an infinite supply of oil, being done by those
who control the world' s oil)Etc…

8 Responses to *****The Structure of a Ponzi Scheme*****

Hiding evidence of UFOs (victimless crime, no end date, not one shred of credible evidence, definitely mastermind)
The New World Order (noble crime, no end date, no evidence, also mastermind)
The Illuminati (victimless crime, no end date, not one shred of credible evidence, also mastermind)
HAARP weapon system (noble crime, no end date, defies the laws of physics, being done by people who can defy the laws of physics)
Abiotic Oil (noble crime, no peak oil, based retarded idea that earthâ€™s crust magically produces an infinite supply of oil, being done by those who control the worldâ€™s oil)
Etcâ€¦"

If you believe all of the above are nonsense "conspiracy theories" and have no basis in fact whatsoever, you are much more of an idiot than one would normally suspect by reading your other posts. That, or you are nothing more than a troll working for who knows what (or whom . . .).

After nearly three years of research, I have found mountains of evidence of fraud in the gold markets, stock markets (naked short selling), media dishonesty, etc... It is on this website.

Yet I have found no credible evidence of UFOs, new world order, etc...

I believe in the fraud, not the "conspiracy theories".

To put it simply, we both agree on the fraud. You say it is "new world order" , I say it is a ponzi scheme being run by the ESF, which is a real, increadibly powerful government agency operating without any oversight.

2) Read the hearings on the gold reserve act of 1934. The one of the key justification for creating the ESF was to take control of the Fed "out of the hands of bankers". The ESF, one of the most vile agencies ever created, owes its existence to the "evil bankers" propaganda.

3) Economically speaking, the "group of bankers control the fed" makes no sense. Inflation benifits irresponcible borrows (the treasury) while completely wrecking the banking sector. The day the dollar collapses, the US financial system will literally cease to exist. Why in the world would bankers conspire to commit financial suicide in this way?

"The notes proposed are fiat notes. They have no reserve whatever provided by the Government, and they are to be lent without limit to a number of banks. There is no case in all history where a nation has started on an issue of fiat money that the result has not been a complete breakdown of the financial system of that country.â€ť